PETALING JAYA: Entrepreneur Development Minister Redzuan Yusof has withdrawn a countersuit filed against the government in 2015 when he was still a businessman.
Lawyer Su Tiang Joo, who is appearing for Gagmar Corporation Sdn Bhd and three guarantors including Redzuan, told FMT this was because his client’s countersuit was based on breached promises by the previous administration.
In 2011, the Barisan Nasional-led government encouraged Redzuan, through his company, Gagnar, to venture into a fish farming project which eventually went south.
The company had put up RM6.5 million of its own funds, with Bank Pertanian Malaysia Bhd to provide a RM18 million Islamic financing facility.
Gagnar claimed the project’s failure was due to inept financial and micro management on the part of the bank. In 2015, the bank filed a suit against the company and its three guarantors for RM22 million over the loan and interest.
The company, Redzuan and three others filed a counterclaim against the bank, two ministries and Putrajaya for losses due to negligence, financial mismanagement and failure to make good on promises and representations.
“For the sake of maintaining the good name of the current administration, and as a sacrifice for national stability, our clients today withdrew their counterclaim against the finance ministry, agriculture and agro-based industry ministry, and the government of Malaysia without liberty to file afresh,” Su said.
He added however that his clients would continue to pursue their counterclaim against Bank Pertanian Malaysia.
“Our clients will continue to pursue their counterclaim against the bank for taking over the financial management of the fish farming project which turned out to be inept, leading to our clients suffering huge losses.”
He said the trial has been adjourned to tomorrow for the bank to decide if it needs to amend its pleadings.
Redzuan joined PPBM in late 2016. He won the Alor Gajah parliamentary seat in Melaka in the 14th general election before becoming a minister.